Protection for Free? : The Political Economy of U.S. Tariff suspensions /

This paper studies the political influence of individual firms on Congressional decisions to suspend tariffs on U.S. imports of intermediate goods. We develop a model in which firms influence the government by transmitting information about the value of protection, via costless messages (cheap-talk)...

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Autor principal: Mishra, Prachi
Altres autors: Ludema, Rodney D., Mayda, Anna Maria
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2010.
Col·lecció:IMF Working Papers; Working Paper ; No. 2010/211
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper studies the political influence of individual firms on Congressional decisions to suspend tariffs on U.S. imports of intermediate goods. We develop a model in which firms influence the government by transmitting information about the value of protection, via costless messages (cheap-talk) and costly messages (lobbying). We estimate our model using firm-level data on tariff suspension bills and lobbying expenditures from 1999-2006, and find that indeed verbal opposition by import-competing firms, with no lobbying, significantly reduces the probability of a suspension being granted. In addition, lobbying expenditures by proponent and opponent firms sway this probability in opposite directions.
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Descripció física:1 online resource (48 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students